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A. IntroductionWhether it's their beautiful frosting, their petite size, or their ability to light up a smile, cupcakes really do have ultimate treat appeal. Every generation loves them and even the grumpiest cant help but help themselves to these tasty pieces of art.
Cupcakes come in many varieties and sizes but there are a few factors that are always the same. Cupcakes are generally baked in muffin pans that are lined with baking paper. They are small in size and are usually frosted and decorated. The best thing about cupcakes is that you can be as basic or as unique as you want with them. Almost any type of cake or brownie can be made into a cupcake with some tweaks of the recipe and a little ingenuity.
Cupcakes may seem Americanized or westernized but you can find cupcakes almost anywhere you go. In Southeast Asia, Thailand, Iceland, Brazil, Argentina, Britain, Hungary etc. In the Philippines you can find rice cakes steamed in banana leaf cups. The varieties are endless and the adaptions are unique to every baker.
Many great classic cupcakes can be served frosted, like Chocolate Butter cream Cupcakes or Mint Chocolate Cupcakes. Others are great plain like Applesauce and Cinnamon Cupcakes or Rum Raisin Cupcakes.
Whether you are a child or an adult, a novice or an experienced baker, once you get started with my cupcake recipes you'll realize just how fun baking and decorating cupcakes can be!
B. Projected Demand
Survey out of 100 x 12 months = Demand
( 100% x 12 = 1,200 )
In determining the Projected demand of RICZEL Cupcakes (Sweet place for you (), we based our computation on the survey that we conducted among a number of people living within the Angeles City especially , those Barangay and school which are near in our market area.Table B.1YEARTOTAL NO. OF DEMAND PER YEAR
20151, 200
20161,218
20171,236
20181,255
20191,274
As the population increase the demand of the services also increases. And as the result, a percentage of 12% was recorded as an increase of demand per year.C. Projected Supply
Table C.1YEARTOTAL NO. OF SUPPLY PER YEAR
201536, 000
201636, 540
201737, 088
201837, 644
201938, 209
D.Projected Demand and Supply
In determining the Projected Demand of Riczel cupcake, we based our computation on the survey that we conducted among the number of people living within the Angeles City specifically those barangays that are the near the market area. As a result of the survey it shows that:Table D.1
Age
DEMANDSUPPLYGAPMARKET SUPPLY
C. Potential number of Customer Table D.2BARANGAYPOPULATIONPERCENTAGESAMPLE SIZE
F. Market AreaRICZEL Cupcakes (Sweet Place for you() is a hang out place here in Pampanga. Pampanga is one of the better places to start up a business. Our business is operating from 9 AM to 9 PM. Our target markets are: Students, Employees, Teenagers, Couples Families and Others.About the Students, we have three (3) student markets. The first is the High School Students, then the College Students and the Elementary Students. High School teens represent one of the fastest growing populations here in our country. Teens significant buying power both in their own right and context of their family purchasing decisions.
College Students are difficult to reach, typically between 18 years old to 20 years old something. They are also hard to find with direct mail because they are highly transient. Our most critical step is to understand our customers needs and to meet those more effectively than the competition. Constantly, we are focusing on the customer and what he/she needs and wants to buy, not what products or services we need or want to sell.G. Buying PowerBased on the survey, we found out that the potential consumers are as follows:Table G.1
CUSTOMER
FREQUENCYPERCENTAGE
Students4747%
Employees3434%
Couples1010%
Families33%
Others66%
TOTAL100100%
In determining the buying power for the potential customers. We the surveyors of the
feasibility study used questionnaires and acquire interviews to the people around the market area in order to gather data.H. Market Share
The market share determines the total share of each business. It is according to the survey in which shows the computed share of each business.
Table H.1
36% of the respondents prefer to eat in Competitor 1, 30% in Competitor 2, 25% in Competitor 3 and the remaining 11% prefer to eat at RICZEL Cupcakes.I. Comparative Analysis Along Of CompetitorsEvery Individual deserves the best value of their money. And it is practical to choose the products with highly quality that will satisfy the constantly changing demands of the customer at affordable price. The lower the price, the higher customer you will have. But, quality must also be considered.Table E.1
Product Name
RICZEL CUPCAKESDOMINIC CUPCAKERY
Red Velvet6065
Chocolate4550
Vanilla Cupcakes4550
Peppermint Mocha5050
Dark Chocolate5570
Banana4045
Strawberry4550
Brown Sugar Butterscotch5060
Nutella Chocolate Chip3035
White Chocolate Molasses Cookies3035
Red Velvet Oreo Brownies3035
Peanut Butter Cup Crunch Brownies2530
Hot Coffee ( Brewed )3030
Chocolate Shake2527
Fruit Shakes2527
Pandan Shakes2527
Coffee Shake3540
J. Gantt ChartACTIVITYSEPTEMBER
OCTOBERNOVEMBERDECEMBERJANUARY
12341234123412341234
Project and Conceptual preparation of business plan
Incorporation and business registration
Construction of the building
Recruitment, selection, hiring and training of employees
Purchased of tools, materials and equipments
Advertising and Promotion
Dry run and business operation
K. SWOT AnalysisIs a structural analysis for analyzing the business strength, weaknesses, opportunities and threats to know how to manage it right.
STRENGTH
Colorful Accessible location
Affordable products and Good customer service
Relaxing ambiance Security Guard
WEAKNESSES
Limited Space
Limited Flavors to offer to the market
The Business is new in the market
No Delivery
OPPURTUNITIES
Market Growth Seasons
Innovation
THREATS
Entry of new competitors
Product Pricing
Price increase of raw materialsL. Description of Products
CUPCAKERED VELVET CUPCAKES
Buttery red velvet cupcakes with creamy cheese frosting on top.PRICE
60.00
CHOCOLATE CUPCAKES
Rich, tender Chocolate cupcakes made of unsweetened natural cocoa powder topped with vanilla frosting and sprinkles.
PRICE
45.00
VANILLA CUPCAKES
Vanilla Cupcakes made of vanilla almond milk & yogurt with Vanilla bean frosting.
PRICE
45.00
PEPPERMINT MOCHA CUPCAKES
Deep Chocolate cupcakes flavored with peppermint and coffee topped with peppermint vanilla frosting, candy canes and a chocolate drizzle
PRICE
50.00
DARK CHOCOLATE CUPCAKES
Dark Chocolate Cupcakes topped with dark chocolate frosting. Good for Chocolate lovers.PRICE
55.00
BANANA CUPCAKES
The ultimate trio of your favorite flavors! Super-moist banana chocolate chip cupcakes with milk chocolate and peanut butter swirled frosting on top. PRICE
40.00
STRAWBERRY CUPCAKES
These fresh strawberry cupcakes are made purely from scratch with real strawberries. Top them with strawberry whipped cream.
PRICE
45.00
BROWN SUGAR BUTTERSCOTCH CUPCAKES
Brown sugar cupcakes filled with homemade butterscotch sauce, topped with vanilla frosting and more butterscotch.
PRICE
50.00
COOKIES
Nutella Chocolate Chip Cookies
Covered with butter and nutella Chocolate.PRICE
30.00
White Chocolate Chip Molasses Cookies
Soft and chewy brown sugared molasses cookies with lots of sweet white chocolate chips.PRICE
30.00
BROWNIES
Red Velvet Oreo Browniesred velvet brownies layered with Oreo frosting, chocolate ganache, and topped with Oreos.
PRICE
30.00
Peanut Butter Cup Crunch Brownies
Made of Semi-Sweet Chocolate Baking Bars , topped with peanut and creamy peanut butterPRICE
25.00
DRINKSBrewed Coffe
Made of Coffee and MilkPRICE
30.00
Chocolate Shake
Made of Chocolate powder & Milk for sweet taste.PRICE
25.00
Fruit Shakes
Made of Different Fruit Flavors and Milk
PRICE
25.00
M. Promotional Activites
Advertisement and Promotion
First week to Second Week
Posting of banners and Tarpaulins Distribution of flyers
Third week to Fourth Week
Social Network Advertisement
Fifth week to sixth week
Promo and Free Taste
FLOOR PLAN59.5 SQ.M 7.50 M
VICINITY MAP
Vi
MC ARTHUR HI-WAY
Diego Silang St.
J. Perspective View
Chapter 3
In this Chapter, all the Management process of the business is tackled, starting from the organizational structure down to Vicinity Map.
The nature of our business is Partnership. A partnership that is composed of five partners, each partner will invest a 20 % share and will get a 20% dividend annually.A. ORGANIZATIONAL STRUCTURE
B. Job Description
POSITIONJOB SPECIFICATIONJOB
DESCRIPTIONSALARIES AND BENEFITS
ManagerHe/she must be 24 years old.Graduate of a 4 years business course.
Must have at least 2 year experience of managing a business.
Responsible for managing all the aspects of the business. Responsible for applying commercial skills to meet sales and cost.500/day
Other mandatory benefits by law such as SSS, PHIL-HEALTH, PAG-IBIG and 13th Month pay.
Baker
He/she must have a passion for food or in baking.Creativity for developing new products or decorating confectionery.
Responsible for baking, decorating and create new product.400/dayOther mandatory benefits by law such as SSS, PHIL-HEALTH, PAG-IBIG and 13th Month pay.
Cashier/ Crew
He/she must be 18 years old and above.At least College Level must be a trust worthy person.
-A crew must be 18 years old above, easy to train and have a pleasing personality.
-A cashier is responsible for receiving payments or cash handling.- A crew is responsible for serving the order and assisting customers.300/dayOther mandatory benefits by law such as SSS, PHIL-HEALTH, PAG-IBIG and 13th Month pay
Maintenance
Must be 20-25 years old and graduate of any related course about maintenance.
Responsible in maintaining and repairing the equipments.300/day
Other mandatory benefits by law such as SSS, PHIL-HEALTH, PAG-IBIG and 13th Month pay
Security GuardMust be 20-25 years old and have an experience.Responsible in securing the store.
300/day
C. Employees BenefitsSocial Security System(SSS)
All employees hired by private companies are become an SSS member(Republic Act No. 8282) . This system aims to protect its member for when they are unable to work such as sickness, disability, maternity, old age and death, or other such contingencies not stated but will result in loss of income or result to a financial burden.Philippine Health Insurance(PhilHealth)
The Philippine Health Insurance Corporation is the medical insurance company of the Philippine. All employees are required to be contributors of this service (Republic Act 7875). Members are given health and hospitalization subsidies should they or a dependent be hospitalized. Monthly contribution are based on actual employee monthly salaries and the amount of employee contribution is matched equally by the employer.
PAG IBIG FundHome Development Mutual Fund Decree No. 1530, a system of employee-employer contribution for housing purpose.
13th Month Pay
According to Presidential Decree No. 851, all Filipino employees are entitled to a year-end bonus equivalent to one (1) month salary regardless of the nature of their employment.
Chapter 4
Financial Aspect
Pre Operating Expense
Capital Fixed Cost
Building Improvement100,000
Equipments123, 681.50
Furniture & Fixtures79, 310.00
Baking Utensils4,406.00
Office Equipments12,421.00
Total Capital Fixed Cost
219,818.50
Working CapitalSalaries & wages65,000Electricity5000Water800
Advertising2,500
Permits & License3,468Raw Materials 29,340Office Supply500Repair maintenance2,000
Employee Contribution4, 833.50
Total 113,441.50Total Capital Fixed Cost
219,818.50
Total Working Capital
113,441.50
Total333,260.00Salaries & Wages
PositionDaily
MonthlyYear 1Year 2Year 3Year 4Year
Manager50013, 000156, 000171,600188,760207,636228,399.60
Baker 140010, 40011,44012,58413,842.4015,226.6416,749.30
Baker 240010, 40011,44012,58413,842.4015,226.6416,749.30
Cashier/Crew3007,8008,5809,43810,381.8011,419.9812,561.98
Cashier/Crew3007,8008,5809,43810,381.8011,419.9812,561.98
Cashier/Crew3007.8008,5809,43810,381.8011,419.9812,561.98
Security Guard300
7,8008,5809,43810,381.8011,419.9812,561.98
Total 2,50065,000213,200234,520257,972.1283,769.2312,146.12
SSS Payments
PositionMonthlyYear 1Year 2Year 3Year 4Year 5
Manager333.303,999.64,399.564,839.565,323.475,855.82
Baker 1266.703,200.403,520.443,872.484,259.734,685.70
Baker 2266.703,200.403,520.443,872.484,259.734,685.70
Cashier/Crew266.703,200.403,520.443,872.484,259.734,685.70
Cashier/Crew266.703,200.403,520.443,872.484,259.734,685.70
Cashier/Crew266.703,200.403,520.443,872.484,259.734,685.70
Security Guard266.703,200.403,520.443,872.484,259.734,685.70
Total 19,335.5023,20225,522.2028,074.4030,881.8533,970
Phil health
PositionMonthlyYear 1Year 2Year 3Year 4Year 5Year 6
Manager2503,000.003,300.003,630.003,993.004,392
Baker 12002,400.002,640.002,904.003,194.403,513.84
Baker 22002,400.002,640.002,904.003,194.403,513.84
Cashier/Crew2002,400.002,640.002,904.003,194.403,513.84
Cashier/Crew2002,400.002,640.002,904.003,194.403,513.84
Cashier/Crew2002,400.002,640.002,904.003,194.403,513.84
Security Guard2002,400.002,640.002,904.003,194.403,513.84
Total 1,45017, 400.0019,140.0021,054.0023,159.425,475.00
Pag-ibig
PositionMonthlyYear 1Year 2Year 3Year 4Year 5
Manager2503,000.003,300.003,630.003,993.004,392
Baker 12002,400.002,640.002,904.003,194.403,513.84
Baker 22002,400.002,640.002,904.003,194.403,513.84
Cashier/Crew2002,400.002,640.002,904.003,194.403,513.84
Cashier/Crew2002,400.002,640.002,904.003,194.403,513.84
Cashier/Crew2002,400.002,640.002,904.003,194.403,513.84
Security Guard2002,400.002,640.002,904.003,194.403,513.84
Total 1,45017, 400.0019,140.0021,054.0023,159.425,475.00
Statement of Major Assumption
In getting the projected sales for RICZEL Cupcakes , based on our survey we conducted out of 50 person, 48 person are willing to have the product in service we offer.
Formula:
Projected sales x transaction/day x 30 days x 12 month.
= 645 x 48 x 30 x 12
=11, 145,600 projected sales on first year of the business.
There would be a 10 % increase of gross income every year.
Income tax rate from year 1 to 5 remain constant ( 32 % )
Electricity, water, salaries and wages, advertising expense, office supplies and
raw materials will increase 10 % annually. From 1st year to 5th year the depreciation of fixed assets, repair and maintenance, permits and licenses will remain constant.
Income Statement
YearYear 1Year 2Year 3Year 4Year 5
Gross Income11, 145,60012, 260, 16013,486,17614, 834,793.616,318,272.96
Operating Expense
Salaries & wages213,200234,520257,972.1283,769.2312,146.12
Electricity60, 00066,00072, 60079.86087, 846
Water9,60010,56011,61612,777.614,055.36
Advertisement30,00033,00036,30039,39043,923
Office expense60006,6007,2607,9868,784.6
Raw materials29,34032,27435,501.4039,051.5442,956.69
Permit & license3,4683,4683,4683,4683,468
Repair & maintenance24,00024,00024,00024,00024,000
Annual Depreciation58, 00263,80270,182.4277,200.6684,920.73
Total Operating Expense315, 608.00474,224
446,299.92
487,722.86
534,254.50
Net Income10, 829,992.0011,785,936.0013, 039,876.0814, 347,070.7415,784,018.46
Less Income Tax 32 %3,465,597.443,771,499.524,172,760.354,591,062.645,050,885.91
Net Income After tax7,364,394.568,014,436.488,867,115.739,756,008.110,733,132.55
Net Book Value
Fixed AssestsCostUseful LifeAnnual Contributrion
Building Improvement100, 000.001010, 000.00
Equipments115, 501.001011, 550.00
Furniture & Fixture44, 122.00104, 412.00
Total259, 62325, 962
Permits & License
DTI200.00
BIR500.00
MAYORS PERMIT300.00
SANITARY PERMIT150.00
FIRE SAFETY518.00
BUSINESS PERMIT1,650.00
BARANGAY CLEARANCE150
TOTAL3,468.00
YearYear 0Year 1Year 2Year 3Year 4Year 5
Cash Inflow
Investment333,260
Gross Income11,145,60012, 260,16013,486,17614,834,793.616,318,272.96
Total Cash Inflow333,26011,145,60012, 260,16013,486,17614,834,793.616,318,272.96
Cash Out Flow
Building Improvement100,000
Equipments123,681.50
Furniture & Fixtures79,310.00
Operating Expenses315, 608.00474,224
446,299.92
487,722.86
534,254.50
Tax Payments (32%)3,465,597.443,771,499.524,172,760.354,591,062.645,050,885.91
Total Outflow302,991.503,781,205.444,245,723.524,619,060.275,078,785.505.585,140.41
Net5 Cash Flow30,268.5010,829,992.0011,785,936.0013,039,876.0814,347,070.7415,784,018.46
Add. Cash Beg. Balance30,268.5010,860,260.5022,646,196.5035,686,072.5850,033,143.32
Cash Ending Balance30,268.5010,860,260.5022,646,196.5035,686,072.5850,033,143.3265,817,161.77
Statement of Cash flow\Balance Sheet
YearYear 1Year 2Year 3Year 4Year 5
Current Asset10,860,260.5022,646,196.5035,686,072.5850,033,143.3265,817,161.77
Total Current Asset10,860,260.5022,646,196.5035,686,072.5850,033,143.3265,817,161.77
Fixed Asset
Building Improvement90, 00080, 00070, 00060, 00050, 000
Equipments111,313.35100,182.0190,163.8181,147,4373,032.69
Furniture & Fixtures
Raw Materials
Total Fixed Asset
Liabilities and Equities
Accounts payable
Equity
Capital
Retained earnings
Total equity
Less: Annual Contributiuon
EMBED Excel.Chart.8 \s
1.73 m
KITCHEN
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3.75 m
OFFICE
COUNTER
4 M
8 m
2.30 m
3 M
Mega X
Salon
7-eleven
(7/11)
Mister Frosty
AUF
College
AUF
Medical Center
Jollibee
Great Dames AUF
ROYALE
Burgasm
Mercury Drug
DOA AURORA ST.
Acqua- Oro
Generics
Pharmacy
MCDO
( AUF )
Professional
School
( AUF )
Dominic
Cupcakery
RICZEL CUPCAKES
A Sweet place for you
Shoulder Boulder
RICZEL
CUPCAKES
A Sweet place for you
5 Rat Internet Cafes
RICZEL CUPCAKES
A Sweet place for you
RICZEL
CUPCAKES
A Sweet place for you
CUPCAKES-COOKIES-BROWNIES
MANAGER
MAINTENANCE/ CREW (3)
CASHIER/
CREW (2)
CASHIER/
CREW (1)
BAKER (2)
BAKER (1)
_1486257957.xlsChart1
0.36
0.3
0.25
0.11
36%
30%
25%
11%
MARKET SHARE
Sheet1
MARKET SHARE
COMPETITOR 136%
COMPETITOR 230%
COMPETITOR 325%
RICZEL Cupcakes11%
To resize chart data range, drag lower right corner of range.